Behind behavioral economic man: the methods and conflicts between two perspectives

Abstract

This work analyzes the methods of research in decision-making of behavioral economists Kahneman and Tversky (K&T) and one of their main critics, Gigerenzer and the ABC Group. Our aim was to explain differences between these two approaches of BE by examining the procedure used by them to search for the cognitive processes involved in choice. We identified similarities between K&T and the mainstream economics methods that may explain some of the differences with their critics’ approach. We conclude with a discussion of how advances in BE, such as Nudges and Choice Architecture may take advantage of complementarities in these perspectives.